Paris (AFP)

The Air France-KLM board of directors meeting on Monday evening gave the green light to the conditions for new government aid to allow the group of airlines to overcome the Covid-19 crisis, Bloomberg said.

According to the financial agency, which relies on unidentified sources "familiar with the matter", the details of this new plan, the result of an agreement between the European Commission and the French government, will be presented on Tuesday morning.

This assistance "includes the conversion of government loans into hybrid bonds and new fundraising," Bloomberg detailed.

Hybrid bonds are bonds issued by a company with a very long or perpetual maturity, and are considered equity.

Asked by AFP on Monday, the group declined to comment.

Air France-KLM came out of a calamitous 2020 financial year weighed down by debt almost doubled to 11 billion euros, a consequence of the pandemic which deprived it of two-thirds of its customers in 2019 and caused it to suffer a net loss abysmal 7.1 billion.

The conversion of part of the loans received from the French and Dutch States, i.e. more than 10 billion euros in 2020, would put the company back on a sustainable financial path, even if it currently has sufficient cash to keep up. several more months.

On Sunday, the French Minister of the Economy Bruno Le Maire announced that an "agreement in principle" had been reached with the European Commission on new financial assistance for Air France, which will have in exchange to give up "a certain number of slots" at Orly airport, but less than the 24 initially required by Brussels.

Mr. Le Maire also recalled that the French State had already "greatly supported" Air France-KLM, of which it is a 14.3% shareholder, by contributing 7 billion euros, and did not sign "a blank check ".

"I am ready to provide new support, but that Air France returns to profit (...) and provides proof of its competitiveness (...) Taxpayers are making an effort, Air France must make an effort of its side, "he pleaded.

For its part Monday morning, the CGT of Air France stressed that this "new financial support" mentioned by Mr. Le Maire did not represent "more money injected", but the transformation of a state loan " in capital ".

© 2021 AFP